In response to investors and the PlayStation faithful around the world looking forward to the PS3's launch, Kutaragi had this to say, “If you asked me if Sony’s strength in hardware was in decline, right now I guess I would have to say that might be true.”

There's no way to sugar coat the manufacturing problems associated with producing the blue laser diodes and the low yields of the Cell processor that have plagued the PS3's early production. And one can't overlook Sony's part in the nearly 5 million notebook batteries recalled by both Dell and Apple -- each battery was manufactured by Sony.

The first step to recovery is admitting that you have a problem. We now just have to sit back and see what Sony does to improve its current situation.